'Objects of Trust must be lawful. Trust whose purpose is unlawful is void.' Discuss.
CS Professional · Drafting, Pleadings and Appearances · PYQS · December 2021
'Objects of Trust must be lawful. Trust whose purpose is unlawful is void.' Discuss.
Answer & Explanation:
Section 4 of the Indian Trusts Act, 1882 provides that the object of the trust must be lawful. The purpose of the trust is lawful unless it is: forbidden by law, or is of such a nature that, if permitted, it would defeat the provisions of any law, or is fraudulent, or involves or implies injury to the person or property of another, or the Court regards it as immoral or opposed to the public policy. Every trust of which the purpose is unlawful is void and where a trust is created for two purposes, of which one is lawful and the other is unlawful, and the two purposes cannot be separated, the whole trust is void. Examples of illegal trust are: trust in restraint of marriage, trust creating perpetuity by settlement of properties intended for maintenance of persons born or to be born indefinitely. Trust to defraud a creditor.
Topics: Trusts
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